Consider the short-run aggregate-supply curve in the following graph. 
a.Calculate approximately the elasticities of the curve at two price levels,P = 20 and P = 100.(Hint: The price elasticity formula is EP = percentage change in Y / percentage change in P.)
b.Explain the meaning of the elasticity in the context of the AS curve.
c.Compare the two elasticities found in (a)and discuss the results.
Definitions:
Hour
A unit of time equal to 60 minutes or 3600 seconds, used to measure the duration of events or intervals between them.
Educational System
The organized institution or aggregate of institutions designed to provide education and learning environments for individuals in a society.
Positive Reinforcements
The addition of a stimulus following a behavior that increases the likelihood of that behavior being repeated.
Conditioned Taste Aversion
A learned association between the taste of a specific food and illness, leading to an aversion to that food.
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